The URL can be used to link to this page

Home My WebLink About02/28/2012C. Approval of the Minutes: January 24, 2012 D. Officers Reports E. Public Forum 1. Resolution 02-2012, Amend 2011 Budget by Restatement & Approval of 2012 Budget 2. Engagement Letter (Audit) 3. Final Yearend Report 4. Yarrow Street Bids (JCHA) 0 # 0 Minutes of Meeting January 24, 2012 11 01 Authority Members Present Cheryl in the City Council ,eat Ridge, Colorado. Also Present:', Larry'Nelson, Cornerstone Realty Henry, Wehrdt, Jeffco Housing Authority Patrick, Eidman, Colorado Preservation Inc. Sally Payne, Deputy Director Dick Matthews, WRHA Accountant Ann Lazzeri, Recording Secretary [a DI It appfo k 5 & 0 p42 It. Motion carried 3-0 with Kathy Nuanes and Janice # lm, w ,r It was moved by Kathy Nuanes and seconded by Joseph DeMott to approve tj minutes of November 22, 2011. Motion carried 4-0 with Katie Vanderveen aIstaining. WRHA Minutes - 1 - January 24, 2012 Dick Matthews reported that it will be necessary to restate the 2011 budget. A draft of the budget will be available in a few days. He also requested that appraisals be perfon on properties that are in process. Wendy Swanshorst, auditor for the Authority, will start field work in February. Audit requirements will be more rigorous than in the past due to the amount of CDBG funds awarded in 201 ■ 1. Fruitdale School — Patrick Eidman — 2. JCHA Up Henry 0110 t t MEMM Wehrdt comm tinted "tha t it is time to look at starting another rehab. Two ;sible properties are lo6fed at 4330 Upham and 7910 West 46 Avenue. Mr.'Nelson reported that the 36 "" Place property is under contract and the closing should take place on February 6 or 7. Mr. Nelson also reported that High Court is under contract and is scheduled to close Feb. 13. k�V?M, ffrirlwl r t r. ► Mr : 0114#1111iftlin nwom =1'ro-1.4am I NOR" 1 t 7MI VON place for posting of meeting notices as required by the Colorado Open Meetings Law. Motion carried 5-0. Sally Payne presented a draft 201 Year End Report for the Wheat Ridge Housing Authority. The finalized version should be available at the next meeting. Authority members were pleased with the re was very useful and should be publicized ou photos were well received and suggestions'm "before" photos as well as photos of various aspects of rehab should be emphasized. The 5. Election of Officers It was moved by Janice Thompson the current slate of officers. Motion cow md comments were made that it the Housing Authority. The nade to include a collage of istruction processes. "Green" Emr;1 El" to keep reappointment to the Board when her L-ving until a replacement is appointed. IM tes and seconded by Katie Vanderveen to adjourn the carried 5-0. The next meeting is scheduled for February Cheryl Brungardt, Chair Ann Lazzeri, Secretary WRHA Minutes - 3 - January 24, 2012 WHEAT RIDGE HOUSING AUTHORITY RESOLUTION NO. 02 Series of 2012 TITLE: A RESOLUTION AMENDING THE 2011 BUDGET BY RESTATEMENT AND ENACTING A BUDGET AND APPROPRIATION FOR THE YEAR 2012 THEREFORE, BE IT RESOLVED by the Wheat Ridge Housing Authority as follows: Section 1. The amended year 2011 budget by restatement and the year 2012 budget as shown on Exhibit I attached hereto are hereby approved. Section 2. Sources of revenue for the Authority are sales of units rehabilitated by the Authority, Community Development Block Grant funds, and interest earned. Section 3. Total expenditures of the Authority do not exceed available revenues and beginning fund balance. Section 4. A certified copy of this resolution shall be filed with the Division of Local Government. ADOPTED the --day of 2012. WHENFRIDGE HOUSING AUTHORITY Chairperson Secretary to the Authority Proposed Bu • get 0 Unaudited Proposed 2010 Projected 2011 2012 Actual 2011 Budget Bud2et Cost of Goods Sold 551 - Beginning Cost of Units 555 - Purchase of Units Summary Rehabilitation Costs 599 • Ending Cost of Units Total COGS 254,635 0 160,714 750,000 0 43,737 0 20,000 5,826 3,703 6,000 2,000 5,00() 0 0 0 0 0 0 0 265746 47,446 166,714 772,000 258,900 0 0 1,361,173 0 1,146,640 900,000 0 35,731 214,533 64,286 250,000 0 -1,361,173 -803,571 -823,673 294,631 0 160,714 787,500 -29,170 47,440 6,000 -15,500 Expense 700 • Selling Costs 916 950 578 2,698 702 - Advertising 99 100 704 - Buyer Incentives 6,095 0 3,847 17,952 705 - Closing Costs 1,508 0 952 4,442 710 • Commissions 12,222 0 7,714 35,999 720 - Homeowners Association# 0 0 750 - Accounting & Legal 7,700 4,300 8,000 10,000 762 - Bank Charges 1,171 1,522 1,200 1,600 771 - City Reimbursement 4,999 6,522 5,000 8,000 775 - Conference & Meeting Exp 1,559 528 1,500 1,600 787 - Dues, Books & Subscriptlo 60 60 100 100 802 • Gardening & Maintenance 0 5,371 0 7,000 $04 - Homeowners Association 1 0 0 0 0 807 - Insurance 0 0 0 0 915 - Management Fee 0 1,931 0 3,000 820 - Miscellaneous 0 0 500 500 825 . Office Supplies 0 146 250 250 $32 - Postage 0 47 100 100 843 • Repairs 84 0 5,000 5,000 853 - Supplies 0 0 250 250 865 • Trash Removal 0 0 0 0 $72 - Utilities 1,370 3,915 0 5,000 Total Expense 37,684 25,391 34,991 103,590 Net Ordinary Income Other Income/Expense Other Income CDBG Grant Other (Expense) 910 - Interest Expense Total Other Expense -66,854 22,049 -28,991 -119,090 1 0 0 0 0 0 - 0 _0 0 0 900,000 900,000 0 -66,8M 922,049 871,009 419,090 1,094,723 1,094,723 1,027,869 2,016,772 1,027,869 2,016,772 1,898,878 1, 897,682 RM wanhorst & Company LLC CeAifiW Pohlic Board of Directors Wheat Ridge Housing Authority 7500 West 29th Avenue Wheat Ridge, Colorado 80033 We are pleased to confirm our understanding of the services we are to provide to the Wheat Ridge Housing Authority. We will audit the basic financial statements of the Authority, as of and for the year ended December 31, 2011, Also, the management's discussion and analysis, if presented, will be subjected to certain limited procedures, but will not be audited. OMMUID=1 The objective of our audit is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the basic financial statements taken as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America. Our audit will include tests of the accounting records and other procedures we consider necessary to enable us to express such an opinion. If our opinion on the financial statements is other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for establishing and maintaining effective internal controls. In fulfilling this responsibility, estimates and judgments by managernent are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. You are also responsible for all management decisions and functions, for designating an individual with suitable skill, knowledge, or experience to oversee our financial statement preparation services and accepting responsibility for the financial statements. 8400 E. Crescent Parkway - Suite 600 - Greenwood Village, CO 8011 1 • (720) 528-4306 Fax: (720) 528-4307 Board of Directors Wheat Ridge Housing Authority Page 2 Management is responsible for establishing and maintaining effective internal controls, including monitoring ongoing activities; for the selection and application of accounting principles; and for the fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. With regard to using the auditors' opinion, you understand that you must obtain our prior written consent to reproduce or use our report in bond offering official statements or other documents. Audit Procedures--General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. Our procedures will include tests ofdocumentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures—luternal Control In planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing Our opinion on the Authority's financial statements. Board of Directors Page 3 Audit Procedures ---Co m plia nee Identifying and ensuring that the Authority complies with laws, regulations, contracts, and agreements is the responsibility ofmanagement. As part ofobtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the Authority's compliance with applicable laws and regulations and the provisions of contracts and agreements. I lowever, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Audit Administration, Fees, and Other We appreciate the opportunity to be of service to the Wheat Ridge Housing Authority and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the letter and return it to us. Very truly yours, swaw�eA-, Swanhorst & Company LLC This letter correctly sets forth the understanding of the Wheat Ridge Housing Authority. M Title Date VON Wheat Fridge Hotj- -ai , nq Authorit YEAR END REPORT - 2011 INTRODUCTION The Wheat Ridge Housing Authority (WRHA) was established by City Council Resolution on January 22, 2001, to address the issue of the high rental rate in the City by increasing home ownership opportunities. Since 2001, 40 units have been rehabilitated. The WRHA completely remodels the units making them safe and attractive inside and appealing on the outside, thereby improving the neighborhood. More recently, the rehabilitation work has also focused on energy efficiency. Properties that have been refurbished include duplexes and multi -unit properties converted from apartments to condominiums. Vision Statement: "To increase home ownership opportunities and neighborhood /community pride in Wheat Ridge." 2010 Program Goals: • Encourage and promote homeownership through the acquisition of deteriorated or foreclosed properties to convert to homeownership. • Become a community resource for the assistance of and referral of housing funding and other housing needs. • Develop partnerships with other Housing Authorities, outside agencies, financial institutions and private investors to provide affordable housing. • Remain a self - sustaining agency by reinvesting profits in the rehabbing of deteriorated housing stock. VON 0 Wheat Fridge Hou- ng Authority YEAR END REPORT - 2011 HOME OWNERSHIP PROGRAM The Wheat Ridge Housing Authority's most recent project is a single- family home on W. 36 Place purchased on July 7, 2011. Before: _10�. .. 5610 W. 36 Place 3 Bedrooms, 2 Bathrooms Built in 1952, 1211 Square Feet Refinished hardwoods, new kitchen, new electrical, new doors, new driveway, new roof, mud /laundry room, eat -it kitchen. Purchase Price: $134,000 Rehab Costs: $63,400 Rehab Completed 9/21/11 Listing Price: $195,000 Under Contract Lull Wheat Ridge Housing Authority After: Wheat Ridge M OUSing Authority YEAR END REPORT - 2011 COMMUNITY DEVELOPMENT BLOCK GRANTS On February 18, 2011, the Wheat Ridge Housing Authority purchased 7 single family homes from Jefferson County Housing Authority using $900,000 in Community Development Block Grant (CDBG) allocations that had been allotted to the City through Jefferson County. The Wheat Ridge Housing Authority is rehabbing the homes with new mechanical systems, windows, roofs and other exterior improvements as needed. Kitchens and bathrooms will be remodeled with new appliances and fixtures. In accordance with CDBG regulations, these CDBG purchased homes must be sold to low to moderate income homebuyers. To keep the homes in an affordable price range but still allow for appealing and desirable rehabilitation of the properties, the Wheat Ridge Housing Authority uses the proceeds of the sales as Program Income to recycle into rehabilitating the other CDBG homes, therefore, allowing the Wheat Ridge Housing Authority to not deplete their own fund reserves. At the time of writing, one home is under contract, two are under construction and one will be going out to bid. The remaining three are currently occupied. 3695 High Court 3- Bedrooms, 2 Bathrooms Built in 1946, 1514 Square feet New kitchen, new baths, new windows, new furnace & A/C, new plumbing & electrical, hardwood floors. Purchase Price: $137,755 Rehab Costs: $82,860 Rehab Completed 12/5/2011 Listing Price: $195,000 Under Contract Wheat Ridge Housing Authority Before: m , _- 1p o After: Wheat Rid Housin Authorit - 3891 Moore St. Under Construction 4035 Nelson Street Under Construction 71 c� 4530 Yarrow St. Under Review Wheat Fridge Hc u-,i ng Authorit YEAR END REPORT - 2011 FRUITDALE SCHOOL On April 25, 2011, the Wheat Ridge Housing Authority purchased the Fruitdale School from the Jefferson County School District. The historic school, built in 1926 and designed by noted Denver architect Temple Buell, was slated for demolition by the School District after the construction of the new Norma Anderson Pre - School adjacent to the Fruitdale building. The WRHA is working with Colorado Preservation Inc. (CPI) and Historic Denver on a structural assessment and reuse analysis of the building through a grant provided by the State Historical Fund. A team of architects will inspect the building and looking at items such as the layout and square footage will provide ideas for possible new uses for the building. f << Fruitdale School started as a two -room brick structure in 1901. Disaster struck in December of 1926 when the school was destroyed by fire. However, a determined faculty kept classes in operation in two churches until the new school was built and completed. A little known architect designed that school in April of 1927. He became famous for designing over 300 buildings in Colorado; his name, Temple Buell. The 1927 school still stands with an addition as distinguished by the two different colors from the school's original brick. (Source: Wheat Ridge Historical Society) Wheat Ridge Housing Authority Cleanup: Roof repair: .Fr, Wheat Ridge Housing Authority 2001 -2011 Funding Sources: 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Received from City $500,000 Received from State (HOME FUNDS) $500,000 Received from County (CDBG /Home Funds) - Construction Drawdown (Quail) $43,898 - Construction Drawdown (Carnation) $11,581 - Construction Drawdown (Carnation) $20,000 - Construction Drawdown (Parkside) $75,000 - Acquisition of Allison Court Duplex $112,500 - Acquisition of W. 41st Avenue Duplex $37,500 $37,500 - Acquisition of 7 Single - Family Homes (JCHA) $900,000 Received Wells Fargo Homeownership Grant $5,000 Projects.. Quail Square Condomiums (14 units) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Acquisition $1,260,000 Rehabilitation $346,485 Proceeds $1,406,200 $382,000 Carnation Square Condominums (10 units) Acquisition $789,000 Rehabilitation $331,766 Proceeds $134,000 $888,481 $242,000 Parkside Townhomes (8 units) Acquisition $545,000 Rehabilitation $382,444 Proceeds $849,900 $246,900 $109,000 Duplexes (6 units) Acquisition of Parfet Street $237,000 Rehabilitation of Parfet Street $100,985 Proceeds from Parfet Street units $190,000 $145,500 Acquisition of Allison Court $385,000 Rehabilitation of Allison Court $71,171 Proceeds from Allison Street units $375,000 Acquisition of W. 41st Avenue $246,000 Rehabilitation of W. 41st Avenue $130,847 Proceeds from W. 41st Avenue units $254,635 Single Family Homes Acquisition of W. 36th Place $134,000 Rehabilitation of W. 36th Place $62,450 Wheat Ridge Housing Authority 2001 -2011 Fkrn(em (IContiJftuody 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Proceeds from W. 36th Place Acquisition of 7 Single - Family Homes (JCHA) $900,000 Rehabilitation of High Court (1:7) $82,860 Proceeds Fruitdale School Acquisition $112,594 Structural Investigation /Feasibility Study $22,027 Cleanup /Roof /Masonry /Weatherization $29,819 Wheat Ridge Housing Authority Balance Sheet As of December 31, 2011 ASSETS Current Assets Checking/Savings 113 - 1st Bank - Checking 120. 1st Bank - Money Market 140 - Rental Working Capital 146 • Cash Clearing Total Checking/Savings Other Current Assets 167 - Frultdale Project 159.3450 Upham Project 161 •3695 High Court Project 163.3893 Moore St. Project 165.4035 Nelson Project 167.4330 Upham Project 169 4530 Yarrow Project 171 -7910 W. 46th Project 173.5610 W. 36th Place Project Total Other Current Assets Total Current Assets Other Assets 273 • Note Receivable - Baca Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 300 - Accounts Payable Total Accounts Payable Other Current Liabilities 310 • Real Estate Taxes Due Total Other Current Liabilities Total Current Liabilities Total Liabilities Equity Net Income 465 • Fund Balance Total Equity Dec 31, '11 Dec 31, '10 (1,947) 2,444 555,828 1,025,178 31,620 0 (291) 0 140,423 0 132,750 0 226,229 0 138,896 0 125,188 0 142,120 0 134,587 0 123,383 0 197,597 0 1,361,173 0 1,946,382 1,027,622 7,619 . .. ... . . ....... 7,946 . .. . . .. ........ 7,619 1 ------ 946, 1,964,001 1,035,668 3,455 7,699 3,455 7,699 629 0 629 0 4,084 7,699 4,084 7,699 922,048 (66,854) 1,027,869 1,094,723 1,949,917 1,027,♦69 1,964,001 1,035,668 TJTJ� lk I , - , Net cash provided by Financing Activities 0.00 Net cash increase for period -442,412,61 Cash at beginning of period 1,027,621.79 Cash at end of period 586,209.18 Jan - Dec 'I I OPERATING ACTIVITIES Net Income 922,048.28 Adjustments to reconcile Net Income to net cash provided by operations: 157 • Fruitdale Project -140,423.42 159. 3450 Upham Project -132,750.28 161 •3695 High Court Project -226,228.88 163.3893 Moore St. Project -138,895.55 165. 4035 Nelson Project -125,188.30 167. 4330 Upham Project -142,119.90 169 - 4630 Yarrow Project -134,586.78 171 •7910 W. 46th Project -123,382.68 173.6610 W. 36th Place Project -197,597.00 300 - Accounts Payable -4,244.31 310 - Real Estate Taxes Due 629.09 Net cash provided by Operating Activities -442,739.73 INVESTING ACTIVITIES 273. Note Receivable - Baca 32712 Not cash provided by Investing Activities 327.12 FINANCING ACTIVITIES 400 • DO NOT USE 66,854.20 466 • Fund Balance -66,854.20 Net cash provided by Financing Activities 0.00 Net cash increase for period -442,412,61 Cash at beginning of period 1,027,621.79 Cash at end of period 586,209.18 W a V mmm m N W W N— O f D W V C D N A W N ,-p- O — CD W ZT WT) ZT. Z W = T.Z m mB c a 3 F m F o w S d m F w F s w s w F v J'f m w 3 p o w a m s£ w d ° '.z J a a o 3 £= DUO w 4. DGn� o 'c J m a Z Boa (D �_.O_ (n .. N fnS O C, (7p p % N tl+ A W _. „;a Q O N �� N- C1 ' 3 n ¢ `f O N= lnc F O J - .. o; O A' o O 3 o p N - O " O p¢ < p O O J O . N A w A _ !� ? J 'm O G O O A m n m w >4 13 ° m m o �n m moo J, ox,s3Amsoo3 .. �n�3`° A�� vi ,gy V o om °3�mo�x.m -pw m o 0 omm o o mm 5.<o N o �o =-m o M O w O O N a m j, a . T N w O 3 n 3 v3m<o2 aw o"m3m w.. p�o »E;=B o¢Ls.o fl-��.w wn mm S,a < T�.w ay! o rrmm Amm srt o��n.v� A 0 . w w ua '7 Q A In (O wo J w DJ0 w . EF m o $ 0'1' wvc m D�.am m 3 s ¢ao c c¢? o Q <.c m y w w J m y Er o 0 0 N O w o X O. 3 0 0 N o o w w mm 0 my C � N NN--� W-� W p) W A N OO�ODO W NNN W W t0 d)IJ IJ IJ UN <O N OI P <n CONAO) W N N O 0 N 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 t0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 nn cm 10 7J -+N N w» - W -(n N .� OO WP RD W N om(ONmO)o N A 0 0 CO O N �C00 ((nn .m fDmPOA O O O < O O V O O)Om O N O O(n O O W N tD N in O O N n O i O � ID 0 PP 00000000 .P N 00000000000 . , 0000 N 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O m u m W N OJN fns O W JOtO O)NNONNN V GJ W-�-+V J V V NNOON O V pJ OJ A[O W ONN NIJk V W W �(O (D V m N A O N O O N O O O O O N N O N O O O O O O O O O O O N N N m O O O O O O O O O O O O O O O O O O O O O O O O O O O O W z Q ZW w O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 -- -- - m Zzc nmo V ' GI N CO CO (p l0 fp A V N O) V (O (O W (n fn W fJ D7 N N O N O) N V l0 A N � D70)NN V W N W CoN ANtOm W NNNON�N V NCO O O O O O O O O O O O O O O O O O O O O O O O O O O O O O m O O O O O O O O O O O O O O O O O O O O O O O O O O O O n pD Z i Am V W A N n W ' N V 7. A O O' V 1 + N A . Oi 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O l•. �p .D p A cap ch QO W� n ^� OOD O O W : Q M G CD W p{. /^ `� CD ^ O ^ , cn m to